There have been changes made to the First Home Owner Grant (FHOG) scheme, effective 1 January 2010. To be eligible for the FHOG, most states have introduced a cap on the maximum price a first home buyer can pay for a property. So it's not quite such a happy New Year for some buyers.
For each state/territory, here is the maximum property price a first home buyer can pay and still be eligible for the grant …
- Australian Capital Territory: No limit
- New South Wales: $750,000
- Northern Territory: $750,000
- Queensland: $1,000,000
- South Australia: No limit
- Tasmania: No limit
- Victoria: $750,000
- Western Australia: $750,000 or $1,000,000 for property above the 26th parallel
Some state governments are still providing additional grants to first time buyers, such as:
- NSW provides a $3,000 supplement and their First Home Plus scheme offers an exemption from duty of up to $17,990. So when you add this to the FHOG, benefits of up to $41,990 are available to first home owners in NSW.
- In South Australia, a First Home Bonus Grant of $4,000 is available for first home purchases with a market value of up to $400,000. This phases out for properties with market values between $400,000 and $450,000 by $8 for every $100 in excess of $400,000.
- In Tasmania, if you are eligible for the FHOG you also get a stamp duty concession of up to $4,000 on the purchase of an existing property valued up to $350,000.
- In Victoria you can get a First Home Bonus Grant of $11,000 for a new home and $2,000 for an existing home on contracts entered into between 1 July 2009 and 30 June 2010, where the value of the property is $600,000 or less.
- In Western Australia, if you are eligible for a FHOG, you pay no stamp duty on properties worth $500,000 or less.
So as you can see, it really pays to do your homework and check out the bonuses and concessions that may be available to you.